The news that Tom Thumb has cancelled its plans to open a full-service grocery store at the redeveloping Red Bird Mall in South Dallas has landed yet another heavy blow to a community already struggling with limited access to fresh, healthy food. This cancellation, despite significant financial incentives from the city, highlights the ongoing and seemingly neverending challenge of addressing food deserts and the systemic issues that perpetuate them in areas like South Dallas.
The Context: Red Bird Mall Was Suppose to Be a Fix
Red Bird Mall, once a bustling retail hub, has faced decline for years, mirroring the economic struggles of the surrounding South Dallas neighborhoods. The area has long been classified as a food desert by the USDA, who proclaims that an urban area must have a poverty rate of 20% or more or a median family income at or below 80% of the area’s median family income and at least 500 people, or 33% of the population, living more than one mile from the nearest grocery store.
This is South Dallas – all but void of fresh produce and health food options, save a handful of grocers, including Joe V’s Smart Shop on Wheatland Rd. and Fiesta on Martin Luther King Jr. Blvd. (which happens housed in a commercial building currently up for sale). Instead, residents have been forced to rely on convenience stores and fast-food restaurants, which offer ultra-processed, “food-like” options that only increase and perpetuate diet-related chronic diseases like obesity, diabetes, and heart disease.
For many in the neighborhood, the redevelopment of Red Bird Mall was seen as a beacon of hope, with the planned Tom Thumb grocery store positioned as a key component. This addition promised not only access to fresh food but also the addition of approximately 90 jobs to add to economic revitalization for the area.
The redevelopment of Red Bird Mall is being led by a group of investors, with Peter Brodsky and Terrence Maiden playing key roles. Brodsky was the initial visionary who was instrumental in acquisition of the property, while Maiden, CEO of Russell Glen Co., is responsible for managing the project and securing tenants to create a mixed-use hub where residents and work and play. For some time, a grocery store was on the to-do list as Brodsky said he wanted to “support the amenities the community desperately lacked.” To seal the deal, the city of Dallas further incentivized the project, throwing in $5.8 million in subsidies to attract the grocery chain.
Still, and despite these efforts, Albertsons Companies, the parent company of Tom Thumb, announced the cancellation of the project on December 5, 2024. The company cited a “thorough economic evaluation” as the reason for this decision, despite the significant financial incentives offered by the city. Darryl Wright, a resident of the Kiest Park neighborhood in South Dallas hypothesized of the change of plans, saying “Either the merger that got shot down between Kroger & Albertsons, or realizing how close the one in Duncanville is will be their excuse.”
Christy Lara, a spokesperson added in an email to The Dallas Morning News that “Albertsons Cos. has committed to providing no-fee delivery to the zip codes in closest proximity to this location through nearby Tom Thumb locations and is in active discussions with stakeholders and community leaders on other ways we can support the community.“
The Unanswered Questions
The cancellation of the Tom Thumb project raises some important questions:
- Does their willing to provide no-fee delivery mean they keep the $5.8 million?: While we don’t know the exact terms of the agreement between the city of Dallas and Albertsons, typically, incentive packages are conditional upon specific performance criteria, such as job creation, investment thresholds, or project completion. If Albertsons fails to meet these conditions, they may forfeit their right to the incentives. However, Albertsons could potentially make a case that the expansion of their delivery footprint has met investment thresholds and created jobs for the area.
- What’s the real issue full-service grocers have with areas like South Dallas: If substantial financial incentives are not enough to attract grocery stores to underserved areas, what is it really? Some retailers (such as Moran Foods, the parent company of the Save-a-Lot brand) have admitted that they perceive these areas as higher risk due to factors like crime rates, economic conditions, and potential for lower sales volume. What are we missing?
Either way, the broken promise of a Tom Thumb at Red Bird Mall serves as a stark reminder of the challenges ahead. It’s a call to action for policymakers, businesses, and community members to meet the need for a multi-faceted approach to tackling food deserts. This includes not only attracting grocery stores but also supporting community-based initiatives, improving public transportation to existing grocery stores, and addressing the root causes of economic inequality.
